By Jeffrey T. Lewis
Brazil's JBS SA, the world's largest meat processor, said Wednesday profit soared in the third quarter from a year earlier as the weaker Brazilian real boosted revenue in that currency.
The meatpacking giant said net profit rose 778% to 3.1 billion reais, the equivalent of US$574.9 million, up from 356.7 million reais a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization rose 35% to 8 billion reais and revenue rose 34.3% to 70.1 billion reais. Per-share earnings increased to 1.17 reais from 0.13 real a year earlier.
The Brazilian currency lost 26.1% of its value against the dollar in the third quarter compared with the same period in 2019, according to JBS. That boosted revenue from the company's three U.S.-based operations, JBS USA Beef, JBS USA Pork and Pilgrim's Pride, which together generated three quarters of JBS's revenue in the third quarter.
Revenue at JBS USA Beef, which includes sales to Australia and Canada, rose 28.7% to 28.8 billion reais but declined 5% in dollar terms. Sales at JBS USA Pork rose 28% to 7.7 billion reais, but fell 5.5% in dollars. Sales at Pilgrim's Pride rose 50% to 16.5 billion reais, up 10.7% from a year earlier in the U.S. currency.
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(END) Dow Jones Newswires
November 12, 2020 06:57 ET (11:57 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.